Chuck
11-01-2008, 09:29 AM
We know GM is in very serious trouble if Volt funding is cut - it needs to hit a home run out of the park (usnews.com/blogs/flowchart/2008/10/31/can-the-chevy-volt-survive-gm.html")
http://www.cleanmpg.com/photos/data/501/Volt_Clean.jpgRick Newmann - US News & World Reports – Oct. 31, 2008
Two momentous things are happening at General Motors. One is GM's electric-powered car, the Chevrolet Volt, which might be a breakthrough machine if it debuts on schedule in late 2010. The other is the deepest financial crisis in GM's history, which threatens virtually every program underway at the huge automaker—including the Volt.
First, the money problem. One of the most overlooked stories of recent weeks is GM's decision to postpone nearly all of its new-product spending for the next two years, as Automotive News reported recently. GM won't confirm the details, but such cutbacks would be a drastic measure meant to preserve cash and help GM avoid bankruptcy, which many analysts think is likely by next year if car sales stay in a funk and GM doesn't raise cash from outside sources.
It's also an extremely risky move. As everybody knows, one of GM's biggest problems is that its cars have fallen behind offerings from competitors like Toyota and Honda. And even though sales are down for the Japanese automakers, too, they haven't eviscerated new-product funding or given up on the future. So GM's spending freeze could erase gains the Detroit automaker has made against its foreign-based rivals in recent years and once again widen the gap between GM and Japan.
The Volt, for now, appears to be an exception to the cutbacks. GM executives say the Volt enjoys privileged status in Detroit because so much is riding on the car. Vice Chairman Bob Lutz, for one, has declared that the Volt "is about recapturing General Motors' technological leadership." … http://www.usnews.com/blogs/flowchart/2008/10/31/can-the-chevy-volt-survive-gm.html
http://www.youtube.com/v/TGH0hedjW6Y&hl=en&fs=1
Volt video enhanced.
http://www.cleanmpg.com/photos/data/501/Volt_Clean.jpgRick Newmann - US News & World Reports – Oct. 31, 2008
Two momentous things are happening at General Motors. One is GM's electric-powered car, the Chevrolet Volt, which might be a breakthrough machine if it debuts on schedule in late 2010. The other is the deepest financial crisis in GM's history, which threatens virtually every program underway at the huge automaker—including the Volt.
First, the money problem. One of the most overlooked stories of recent weeks is GM's decision to postpone nearly all of its new-product spending for the next two years, as Automotive News reported recently. GM won't confirm the details, but such cutbacks would be a drastic measure meant to preserve cash and help GM avoid bankruptcy, which many analysts think is likely by next year if car sales stay in a funk and GM doesn't raise cash from outside sources.
It's also an extremely risky move. As everybody knows, one of GM's biggest problems is that its cars have fallen behind offerings from competitors like Toyota and Honda. And even though sales are down for the Japanese automakers, too, they haven't eviscerated new-product funding or given up on the future. So GM's spending freeze could erase gains the Detroit automaker has made against its foreign-based rivals in recent years and once again widen the gap between GM and Japan.
The Volt, for now, appears to be an exception to the cutbacks. GM executives say the Volt enjoys privileged status in Detroit because so much is riding on the car. Vice Chairman Bob Lutz, for one, has declared that the Volt "is about recapturing General Motors' technological leadership." … http://www.usnews.com/blogs/flowchart/2008/10/31/can-the-chevy-volt-survive-gm.html
http://www.youtube.com/v/TGH0hedjW6Y&hl=en&fs=1
Volt video enhanced.